2021 Higher Ground Playbook

Higher Ground – 2021 Performance Driver Summary

Reach 7 of 9 Platinum targets

Reach 7 of 9 Pinnacle targets

Platinum

Pinnacle

Pinnacle Target

2021 Performance Driver

Platinum Target

Quality 1. Discovery Acceptance & Best Brands

≥ 70% Discovery Acceptance and ≥ 70% eligible Best Brands ≥ 93% Renovation in Last 8 Years or Alt Path: achieve OSAT + Discovery Acceptance + Best Brands 80 surveys minimum in a rolling 12 months and an OSAT Score >=80% ≥ 10 hours Complete at least 5 Employee Engagement Surveys per year and achieve or exceed a 70% engagement score B2B YOY Growth >5% or B2B Sales % to Total >15% ≥ 50% Participate in all three: BOPIS, BODFS, Assembly

≥ 80% Discovery Acceptance and ≥ 80% eligible Best Brands ≥ 95% Renovation in Last 8 Years or Alt Path: achieve OSAT + Discovery Acceptance + Best Brands 80 surveys minimum in a rolling 12 months and an OSAT Score ≥85% ≥ 15 hours Complete at least 5 Employee Engagement Surveys per year and achieve or exceed an 80% engagement score B2B YOY Growth >7% or B2B Sales % to Total >20% ≥ 65% Participate in all three: BOPIS, BODFS, Assembly

2. Ace In-Stock Percentage 3. Consumer-Relevant Store

Service 4. Overall Customer Satisfaction (OSAT)

5. Training Hours (customer-facing assoc.) 6. Employee Engagement

Convenience 7. Business to Business Sales (B2B)

8. Ace Rewards Scan Rate 9. Acehardware.com Fulfillment

Alternate path to Pinnacle = Achieve all three targets: 8% Earnings Before Interest & Taxes (EBIT) 18% Pre-Tax Return on Equity (ROE)

Overall Customer Satisfaction (OSAT)

80%

9

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